California added 393,000 new people in 2009, with San Diego, state's second largest city, gaining more than 17,000, according to a new report from the state Department of Finance.

The numbers released Thursday estimate 38.6 million people now live in the state and 1,376,173 people live in the city of San Diego.

Los Angeles, already the most populous city in the state, added 44,000 residents, expanding its population to 4,094,764. In Northern California, the department says San Jose's population grew by more than 16,000, while San Francisco's expanded by nearly 9,500.

According to the report, Colfax in Placer County was California's fastest growing city (5.7%), followed by Beaumont in Riverside County (5.5%), Sand City in Monterey County (5.4%), Coachella in Riverside County (3.8%), and Oakley in Contra Costa County (3.3%).

Fresno reached a milestone in 2009, surpassing the 500,000 population mark.

Officials said the state's housing growth in 2009 underscored the severity of the housing downturn. Only 62,300 new homes were added in California in 2009 -- a big decline from the boom years of the mid-decade. For example, in 2005 the state added 197,477 new units; in 2006, 172,458 units were added.